Intrinsic value of Church&Dwight - CHD

Previous Close

$50.27

  Intrinsic Value

$37.45

stock screener

  Rating & Target

sell

-26%

  Value-price divergence*

+23%

Previous close

$50.27

 
Intrinsic value

$37.45

 
Up/down potential

-26%

 
Rating

sell

 
Value-price divergence*

+23%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of CHD stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 12.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  2.89
  3.30
  3.47
  3.62
  3.76
  3.88
  4.00
  4.10
  4.19
  4.27
  4.34
  4.41
  4.47
  4.52
  4.57
  4.61
  4.65
  4.68
  4.72
  4.74
  4.77
  4.79
  4.81
  4.83
  4.85
  4.86
  4.88
  4.89
  4.90
  4.91
  4.92
Revenue, $m
  3,493
  3,608
  3,733
  3,869
  4,014
  4,170
  4,337
  4,514
  4,703
  4,904
  5,117
  5,343
  5,581
  5,834
  6,100
  6,381
  6,678
  6,991
  7,321
  7,668
  8,034
  8,419
  8,824
  9,251
  9,699
  10,171
  10,667
  11,189
  11,737
  12,314
  12,919
Variable operating expenses, $m
 
  1,763
  1,819
  1,880
  1,945
  2,015
  2,090
  2,170
  2,255
  2,345
  2,440
  2,397
  2,504
  2,617
  2,737
  2,863
  2,996
  3,137
  3,284
  3,440
  3,604
  3,777
  3,959
  4,150
  4,352
  4,563
  4,786
  5,020
  5,266
  5,525
  5,796
Fixed operating expenses, $m
 
  1,111
  1,139
  1,167
  1,197
  1,226
  1,257
  1,289
  1,321
  1,354
  1,388
  1,422
  1,458
  1,494
  1,532
  1,570
  1,609
  1,649
  1,691
  1,733
  1,776
  1,821
  1,866
  1,913
  1,961
  2,010
  2,060
  2,111
  2,164
  2,218
  2,274
Total operating expenses, $m
  2,769
  2,874
  2,958
  3,047
  3,142
  3,241
  3,347
  3,459
  3,576
  3,699
  3,828
  3,819
  3,962
  4,111
  4,269
  4,433
  4,605
  4,786
  4,975
  5,173
  5,380
  5,598
  5,825
  6,063
  6,313
  6,573
  6,846
  7,131
  7,430
  7,743
  8,070
Operating income, $m
  724
  734
  775
  821
  872
  928
  990
  1,056
  1,128
  1,206
  1,289
  1,523
  1,619
  1,722
  1,832
  1,948
  2,073
  2,205
  2,346
  2,495
  2,653
  2,821
  2,999
  3,187
  3,387
  3,598
  3,821
  4,057
  4,307
  4,571
  4,849
EBITDA, $m
  832
  945
  989
  1,038
  1,091
  1,150
  1,215
  1,284
  1,360
  1,441
  1,529
  1,623
  1,723
  1,830
  1,945
  2,067
  2,197
  2,335
  2,482
  2,637
  2,803
  2,978
  3,163
  3,359
  3,567
  3,787
  4,020
  4,266
  4,525
  4,800
  5,090
Interest expense (income), $m
  26
  33
  35
  38
  41
  44
  47
  51
  55
  59
  64
  68
  73
  78
  84
  90
  96
  102
  109
  117
  124
  132
  141
  150
  159
  169
  179
  190
  201
  213
  226
Earnings before tax, $m
  706
  701
  740
  783
  831
  884
  942
  1,005
  1,073
  1,147
  1,226
  1,455
  1,546
  1,644
  1,748
  1,859
  1,977
  2,102
  2,236
  2,378
  2,529
  2,689
  2,858
  3,038
  3,228
  3,429
  3,642
  3,867
  4,106
  4,357
  4,623
Tax expense, $m
  247
  189
  200
  212
  224
  239
  254
  271
  290
  310
  331
  393
  417
  444
  472
  502
  534
  568
  604
  642
  683
  726
  772
  820
  872
  926
  983
  1,044
  1,109
  1,176
  1,248
Net income, $m
  459
  512
  540
  572
  607
  646
  688
  734
  783
  837
  895
  1,062
  1,129
  1,200
  1,276
  1,357
  1,443
  1,535
  1,632
  1,736
  1,846
  1,963
  2,087
  2,218
  2,356
  2,503
  2,659
  2,823
  2,997
  3,181
  3,375

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  188
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  4,354
  4,306
  4,455
  4,617
  4,790
  4,976
  5,175
  5,387
  5,613
  5,852
  6,106
  6,376
  6,660
  6,961
  7,279
  7,615
  7,969
  8,342
  8,736
  9,150
  9,587
  10,046
  10,530
  11,039
  11,574
  12,137
  12,729
  13,352
  14,006
  14,694
  15,417
Adjusted assets (=assets-cash), $m
  4,166
  4,306
  4,455
  4,617
  4,790
  4,976
  5,175
  5,387
  5,613
  5,852
  6,106
  6,376
  6,660
  6,961
  7,279
  7,615
  7,969
  8,342
  8,736
  9,150
  9,587
  10,046
  10,530
  11,039
  11,574
  12,137
  12,729
  13,352
  14,006
  14,694
  15,417
Revenue / Adjusted assets
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
  0.838
Average production assets, $m
  1,950
  2,013
  2,083
  2,159
  2,240
  2,327
  2,420
  2,519
  2,625
  2,737
  2,855
  2,981
  3,114
  3,255
  3,404
  3,561
  3,726
  3,901
  4,085
  4,279
  4,483
  4,698
  4,924
  5,162
  5,412
  5,675
  5,952
  6,243
  6,549
  6,871
  7,209
Working capital, $m
  -245
  -7
  -7
  -8
  -8
  -8
  -9
  -9
  -9
  -10
  -10
  -11
  -11
  -12
  -12
  -13
  -13
  -14
  -15
  -15
  -16
  -17
  -18
  -19
  -19
  -20
  -21
  -22
  -23
  -25
  -26
Total debt, $m
  1,120
  1,005
  1,083
  1,168
  1,259
  1,357
  1,461
  1,572
  1,691
  1,816
  1,950
  2,091
  2,241
  2,399
  2,566
  2,742
  2,928
  3,124
  3,330
  3,548
  3,777
  4,018
  4,272
  4,539
  4,820
  5,116
  5,427
  5,754
  6,097
  6,458
  6,838
Total liabilities, $m
  2,376
  2,261
  2,339
  2,424
  2,515
  2,613
  2,717
  2,828
  2,947
  3,072
  3,206
  3,347
  3,497
  3,655
  3,822
  3,998
  4,184
  4,380
  4,586
  4,804
  5,033
  5,274
  5,528
  5,795
  6,076
  6,372
  6,683
  7,010
  7,353
  7,714
  8,094
Total equity, $m
  1,978
  2,045
  2,116
  2,193
  2,275
  2,364
  2,458
  2,559
  2,666
  2,780
  2,901
  3,028
  3,164
  3,307
  3,458
  3,617
  3,785
  3,963
  4,150
  4,346
  4,554
  4,772
  5,002
  5,243
  5,498
  5,765
  6,046
  6,342
  6,653
  6,980
  7,323
Total liabilities and equity, $m
  4,354
  4,306
  4,455
  4,617
  4,790
  4,977
  5,175
  5,387
  5,613
  5,852
  6,107
  6,375
  6,661
  6,962
  7,280
  7,615
  7,969
  8,343
  8,736
  9,150
  9,587
  10,046
  10,530
  11,038
  11,574
  12,137
  12,729
  13,352
  14,006
  14,694
  15,417
Debt-to-equity ratio
  0.566
  0.490
  0.510
  0.530
  0.550
  0.570
  0.590
  0.610
  0.630
  0.650
  0.670
  0.690
  0.710
  0.730
  0.740
  0.760
  0.770
  0.790
  0.800
  0.820
  0.830
  0.840
  0.850
  0.870
  0.880
  0.890
  0.900
  0.910
  0.920
  0.930
  0.930
Adjusted equity ratio
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475
  0.475

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  459
  512
  540
  572
  607
  646
  688
  734
  783
  837
  895
  1,062
  1,129
  1,200
  1,276
  1,357
  1,443
  1,535
  1,632
  1,736
  1,846
  1,963
  2,087
  2,218
  2,356
  2,503
  2,659
  2,823
  2,997
  3,181
  3,375
Depreciation, amort., depletion, $m
  108
  212
  214
  216
  219
  222
  225
  228
  232
  236
  240
  99
  104
  109
  113
  119
  124
  130
  136
  143
  149
  157
  164
  172
  180
  189
  198
  208
  218
  229
  240
Funds from operations, $m
  729
  723
  754
  788
  826
  867
  913
  962
  1,015
  1,073
  1,134
  1,162
  1,233
  1,308
  1,389
  1,475
  1,567
  1,665
  1,769
  1,879
  1,996
  2,119
  2,251
  2,390
  2,537
  2,693
  2,857
  3,031
  3,215
  3,410
  3,615
Change in working capital, $m
  74
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
  -1
Cash from operations, $m
  655
  724
  754
  788
  826
  868
  913
  962
  1,016
  1,073
  1,135
  1,162
  1,233
  1,309
  1,390
  1,476
  1,568
  1,665
  1,769
  1,879
  1,996
  2,120
  2,251
  2,391
  2,538
  2,694
  2,858
  3,032
  3,216
  3,411
  3,616
Maintenance CAPEX, $m
  0
  -65
  -67
  -69
  -72
  -75
  -78
  -81
  -84
  -87
  -91
  -95
  -99
  -104
  -109
  -113
  -119
  -124
  -130
  -136
  -143
  -149
  -157
  -164
  -172
  -180
  -189
  -198
  -208
  -218
  -229
New CAPEX, $m
  -50
  -63
  -70
  -75
  -81
  -87
  -93
  -99
  -105
  -112
  -119
  -126
  -133
  -141
  -149
  -157
  -166
  -175
  -184
  -194
  -204
  -215
  -226
  -238
  -250
  -263
  -277
  -291
  -306
  -322
  -338
Cash from investing activities, $m
  -355
  -128
  -137
  -144
  -153
  -162
  -171
  -180
  -189
  -199
  -210
  -221
  -232
  -245
  -258
  -270
  -285
  -299
  -314
  -330
  -347
  -364
  -383
  -402
  -422
  -443
  -466
  -489
  -514
  -540
  -567
Free cash flow, $m
  300
  595
  617
  644
  673
  706
  743
  783
  826
  874
  925
  941
  1,000
  1,064
  1,133
  1,206
  1,284
  1,367
  1,455
  1,549
  1,650
  1,756
  1,869
  1,988
  2,115
  2,250
  2,392
  2,543
  2,702
  2,871
  3,049
Issuance/(repayment) of debt, $m
  69
  73
  78
  85
  91
  98
  104
  111
  118
  126
  133
  141
  150
  158
  167
  176
  186
  196
  207
  218
  229
  241
  254
  267
  281
  296
  311
  327
  344
  361
  380
Issuance/(repurchase) of shares, $m
  -350
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -257
  73
  78
  85
  91
  98
  104
  111
  118
  126
  133
  141
  150
  158
  167
  176
  186
  196
  207
  218
  229
  241
  254
  267
  281
  296
  311
  327
  344
  361
  380
Total cash flow (excl. dividends), $m
  41
  668
  696
  728
  764
  804
  847
  894
  945
  999
  1,058
  1,082
  1,150
  1,222
  1,299
  1,382
  1,469
  1,563
  1,662
  1,767
  1,879
  1,997
  2,123
  2,256
  2,396
  2,545
  2,703
  2,870
  3,046
  3,232
  3,429
Retained Cash Flow (-), $m
  45
  -67
  -71
  -77
  -82
  -88
  -94
  -101
  -107
  -114
  -121
  -128
  -135
  -143
  -151
  -159
  -168
  -177
  -187
  -197
  -207
  -218
  -230
  -242
  -254
  -267
  -281
  -296
  -311
  -327
  -343
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  601
  625
  652
  682
  715
  752
  793
  837
  885
  937
  954
  1,015
  1,079
  1,148
  1,222
  1,301
  1,385
  1,475
  1,570
  1,671
  1,779
  1,893
  2,014
  2,142
  2,278
  2,422
  2,574
  2,735
  2,905
  3,085
Discount rate, %
 
  4.40
  4.62
  4.85
  5.09
  5.35
  5.62
  5.90
  6.19
  6.50
  6.83
  7.17
  7.53
  7.90
  8.30
  8.71
  9.15
  9.60
  10.08
  10.59
  11.12
  11.67
  12.26
  12.87
  13.51
  14.19
  14.90
  15.64
  16.43
  17.25
  18.11
PV of cash for distribution, $m
 
  575
  571
  565
  559
  551
  542
  531
  518
  502
  484
  446
  425
  402
  376
  349
  321
  291
  262
  232
  203
  175
  149
  124
  102
  83
  65
  51
  39
  29
  21
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Church & Dwight Co., Inc. develops, manufactures, and markets household, personal care, and specialty products in the United States. It operates through three segments: Consumer Domestic, Consumer International, and Specialty Products Division (SPD). The Consumer Domestic segment offers household products, including baking soda, carpet and cat litter deodorizers, clumping cat litters, washing soda, fabric softeners, daily shower cleaners, cleaning products, dishwashing detergents and boosters, laundry and cleaning solutions, and bathroom cleaners, as well as powder, liquid, and unit dose laundry detergents; and personal care products, such as toothpastes and oral rinses, home pregnancy and ovulation test kits, deodorants and antiperspirants, toothbrushes, shampoos, dietary supplements, depilatories, lotions, creams, waxes, oral analgesics, nasal saline moisturizers, and feminine hygiene products, as well as condoms, lubricants, and vibrating products. The Consumer International segment sells personal care, household, and over-the-counter products in international markets comprising Canada, France, Australia, China, the United Kingdom, Mexico, and Brazil. The SPD segment offers animal productivity consisting of feed grade sodium bicarbonate, rumen fermentation enhancers, feed grade potassium carbonate, rumen bypass fat and lysine, omega 3 and 6 essential fatty acids, natural sodium sesquicarbonate, and refined functional carbohydrate; and specialty chemicals, including performance grade sodium bicarbonate, and potassium carbonate and bicarbonate. It also provides specialty cleaners, such as aqueous cleaners and deodorizers for commercial and industrial applications. The company sells its products through supermarkets, mass merchandisers, wholesale clubs, drugstores, convenience stores, home stores, dollar and pet stores, and other specialty stores, as well as through Websites. Church & Dwight Co., Inc. was founded in 1846 and is headquartered in Ewing, New Jersey.

FINANCIAL RATIOS  of  Church&Dwight (CHD)

Valuation Ratios
P/E Ratio 27.8
Price to Sales 3.7
Price to Book 6.5
Price to Tangible Book
Price to Cash Flow 19.5
Price to Free Cash Flow 21.1
Growth Rates
Sales Growth Rate 2.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -19.4%
Cap. Spend. - 3 Yr. Gr. Rate -5.7%
Financial Strength
Quick Ratio 0
Current Ratio 0
LT Debt to Equity 35%
Total Debt to Equity 56.6%
Interest Coverage 28
Management Effectiveness
Return On Assets 11.1%
Ret/ On Assets - 3 Yr. Avg. 10.3%
Return On Total Capital 14.9%
Ret/ On T. Cap. - 3 Yr. Avg. 13.7%
Return On Equity 22.9%
Return On Equity - 3 Yr. Avg. 20.5%
Asset Turnover 0.8
Profitability Ratios
Gross Margin 45.5%
Gross Margin - 3 Yr. Avg. 44.7%
EBITDA Margin 24%
EBITDA Margin - 3 Yr. Avg. 23%
Operating Margin 20.7%
Oper. Margin - 3 Yr. Avg. 20%
Pre-Tax Margin 20.2%
Pre-Tax Margin - 3 Yr. Avg. 19.3%
Net Profit Margin 13.1%
Net Profit Margin - 3 Yr. Avg. 12.6%
Effective Tax Rate 35%
Eff/ Tax Rate - 3 Yr. Avg. 34.7%
Payout Ratio 39.9%

CHD stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CHD stock intrinsic value calculation we used $3493 million for the last fiscal year's total revenue generated by Church&Dwight. The default revenue input number comes from 2016 income statement of Church&Dwight. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our CHD stock valuation model: a) initial revenue growth rate of 3.3% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.4%, whose default value for CHD is calculated based on our internal credit rating of Church&Dwight, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Church&Dwight.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of CHD stock the variable cost ratio is equal to 49%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1084 million in the base year in the intrinsic value calculation for CHD stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Church&Dwight.

Corporate tax rate of 27% is the nominal tax rate for Church&Dwight. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the CHD stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for CHD are equal to 55.8%.

Life of production assets of 31 years is the average useful life of capital assets used in Church&Dwight operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for CHD is equal to -0.2%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $1978 million for Church&Dwight - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 256.022 million for Church&Dwight is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Church&Dwight at the current share price and the inputted number of shares is $12.9 billion.

RELATED COMPANIES Price Int.Val. Rating
PG Procter&Gamble 92.44 51.93  sell
CL Colgate-Palmol 71.93 19.12  str.sell
CLX Clorox 136.94 71.84  sell
ALR Alere 49.62 8.71  str.sell
ECL Ecolab 132.41 45.06  str.sell
CAW CCA Industries 3.65 0.29  str.sell

COMPANY NEWS

▶ Top Losers in the Consumer Sector on July 31August 4   [Aug-09-17 11:06AM  Market Realist]
▶ Church & Dwight Completes Purchase of Water Pik   [Aug-08-17 07:00AM  Business Wire]
▶ Church & Dwight beats 2Q profit forecasts   [02:36AM  Associated Press]
▶ Church & Dwight: Not the Best, Not the Worst   [Aug-03-17 05:13PM  Barrons.com]
▶ Church & Dwight Reports Results   [07:00AM  Business Wire]
▶ 5 Companies Reach Yearly Highs   [Aug-01-17 01:59PM  GuruFocus.com]
▶ Kimberly-Clark: Analysts Recommendations and Target Price   [Jul-19-17 10:37AM  Market Realist]
▶ Kimberly-Clarks Sales in 2Q17: What Analysts Expect   [Jul-18-17 03:05PM  Market Realist]
▶ Company News for July 18, 2017   [09:38AM  Zacks]
▶ [$$] Church & Dwight to Buy Water Pik for $1 Billion   [12:45AM  The Wall Street Journal]
▶ Dominion Diamond and Impax rise; FedEx and BlackRock fall   [Jul-17-17 05:17PM  Associated Press]
▶ M&A Monday: Church & Dwight, Dominion Diamond, Valeant & More   [04:12PM  Investor's Business Daily]
▶ Arm & Hammer parent will gobble up Colorado's Water Pik for $1 billion   [03:04PM  American City Business Journals]
▶ News Update Late Morning   [11:53AM  CNBC Videos]
▶ [$$] Church & Dwight to Buy Water Pik   [10:05AM  The Wall Street Journal]
▶ Church & Dwight to Report Second Quarter 2017 Results   [Jul-06-17 11:38AM  Business Wire]
▶ How CLX, CHD, CL, KMB and PG Compare by Valuation   [Jun-14-17 10:36AM  Market Realist]
▶ Why Church & Dwights Margins Stand Out   [07:37AM  Market Realist]
▶ How Clorox Is Outperforming Peers in Top-Line Growth   [Jun-13-17 10:37AM  Market Realist]
▶ Consumer Companies Analyst Ratings for May 1519, 2017   [May-22-17 05:06PM  Market Realist]
▶ 3 Dividend Stocks for Successful Investors   [May-10-17 10:41AM  Motley Fool]
▶ Consumer Products Stocks Jump on Q1 Results   [May-08-17 11:30AM  Investopedia]
▶ Tosa bio-science entrepreneur sells business for $75 million-plus   [May-05-17 12:19PM  American City Business Journals]
▶ Church & Dwight tops Street 1Q forecasts   [07:27AM  Associated Press]
▶ Wells Fargo Calls Consumer Staples Uninvestible   [Apr-20-17 11:44AM  Investopedia]
▶ Colgate, Clorox & Procter: The Uninvestable?   [Apr-19-17 11:28AM  Barrons.com]
▶ Church & Dwight to Report First Quarter 2017 Results   [Mar-30-17 03:36PM  Business Wire]
Stock chart of CHD Financial statements of CHD
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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